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If you apply for a ‘no medical and no blood test’ personal insurance, don’t assume you will be covered for any medical condition you already have. Pre-existing health problems are generally excluded in the fine print of a personal insurance policy. However, you might not find this out until years later at the time of a claim.

The advertising makes it sound so simple and convenient, but if there’s no health assessment and very few questions up front, it usually means that enquiries will be made when it comes time to make a claim.

Whether you realise or not, your signature on an insurance application generally gives the insurer written permission to access your medical records, including reasons for GP, specialist and hospital visits; and also your history of Medicare claims.

Meanwhile, you may be paying for years of cover that you have no chance of claiming on.

There are two important points about personal insurance worth making here. Firstly, very few people are ever asked to undergo a full medical for insurance. The reason is simple; the insurer has to pay for it. A blood test is more common and if deemed necessary, the insurer pays for it and simply sends a nurse to your home or work at your convenience.

Secondly, the purpose of underwriting (i.e. asking lots of questions up front and maybe having a blood test) is to work out what you can be covered for, which significantly increases your certainty of being paid a claim. It also ensures you pay only what you have to.

Arranging insurance through a reputable licensed adviser is not as scary as you may think. They will assess your situation and recommend what you need. That’s not a bad thing because they will often highlight issues you may not have thought about. You simply buy what you can afford.

There are some very good insurance advisers in our local community and you will know where you stand with your insurance from the start.

You are welcome to contact me for a referral to a good insurance adviser or a second opinion on advice you have received.